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Wednesday, October 11, 2017

Recent Buy GIS

I have been following GIS for six months and finally today I pounced grabbing 5 shares at 50.76 per share. I realize that the General Mills brand isn't necessarily what it was 5 years ago. But certain numbers I just love.

3.85% Yield
13 years dividend growth
63 percent payout ratio.

All that are at a near 52 week low. All that for a 18.3 percent P/E Ratio. I realize this consumer staple may not be what it once was in terms of market share. But I don't see them going away anytime soon. Time will tell but this feels like a good buy.

Sunday, October 1, 2017

September Dividends

Its been a relatively quiet month for me in terms of investing. I doubled my Roth IRA contributions. But have been relatively silent in terms of individual buys. In fact this was the first month as a DGI that I didn't make a purchase. I did still make my normal deposits into my account. That said, September was very busy for me in terms of actual dividends.  A record $27.18. Lets put that in perspective last year I earned 6.63 in September. This year's dividends more than quadrupled that. So much motivation. What's even nicer is that by not rushing to make a September purchase, I'm in position to make a larger one if I see something I want to pounce on. Below is my dividend rundown.

WFC     0.78
UL        0.83
DFS      1.75
ADM    0.32
AMGN 1.15
TGT     6.20
EMR    2.40
JNJ       0.84
CMP    3.60
O          1.06
FLO     1.70
DUK    3.56
GM      1.14
BAC    0.24
PEP     1.61

Saturday, September 16, 2017

When Your Goals are in Conflict

Hello again. My posting has slowed as the school year has begun and I finally get to see a taste of how big the job is that I stepped into is. Being a district administrator for the first time I literally feel like I'm planning 5 weddings. But that is a story for a different blog. But until I catch on I expect the new job may limit my blogging. 

The purpose of this posting is in the next year my wife and I are looking to be homeowners for the first time. We make a solid income and both have made the job moves we were looking to make. The challenge is balancing my financial goals.

Do I put all of my income into my house fund. Do I give my Roth a needed boost. Or do I boost my Robinhood Account where I do all my DGI?

My salary boost isn't as big as it would normally seem because I boosted my contribution to the monthly expenses by $600 a month. My wife had been paying the bulk of the daycare costs for our two children. So this gives her some relief. 

My thoughts right now are to double my Roth IRA payments. I'm not taking advantage of the tax benefit. Even if I double the payment I won't max it.  Then the question is what to do with the rest. Right now I'm thinking that I will continue to make the same contribution to the house fund and boost my DGI contributions. The remaining salary I don't think is enough to make a significant difference in downpayment money. I think I will be able to secure a downpayment based on what we were pre-approved for last year. But I was hoping to have more. On the other hand I'm trying to build something with this investment strategy and it would be nice to plant a few more seeds.

Decisions, decisions.

Friday, September 1, 2017

August Dividends

I don't like to toot my own horn, but beep, ba-beep, beep. My first double digit non-quarter dividend month, 625% year over year growth. There is a lot to be happy about. This August, I earned 11.82 in dividends. To think last year that number was $1.63  Here is the breakdown.


T:          $6.86
KMI:     $0.50
O:          $1.06
ABBV:  $2.56
SBUX:  $0.50
INN:      $0.34

Life if good.

Sunday, August 20, 2017

Sometimes the best moves are no moves

I have a little less than $50 in my Robinhood account right now. A combination of dividends and money from a Lending Club account I am phasing out. I have to admit I was ready to pounce on all kinds of options. I had about 7 different ideas of what I could add a share of. With the little dip in the market there were plenty of chances to lower my cost basis. But I had to be honest with myself. The reason I had 7 ideas, was because I didn't really have one. I had scanned a few metrics and read a little on each of them. But the reason I was considering adding a share, was more the desire to add a share than anything else.

But I can't react to every tiny dip in the market. If something isn't jumping out at me, there is no pressure to buy just because I haven't in a while. It's hard because I want my money to be working for me and not sitting in a bank or my Robinhood Account.

What I've noticed about myself is that at this stage of my young DGI career is that I don't panic when it comes to the selling side. If anything I need to learn to sell sooner in some instances. But I can be an impulsive buyer. I'm an impulsive person by nature. So I must constantly remind myself to be more patient and to properly research before jumping in. As long as I'm using Robinhood, I will be making a lot of small buys. But I want to make sure, I'm taking the proper time to think and research and not pouncing on the flavor of the day.

Monday, August 7, 2017

Recent Buy SBUX

Today I grabbed two shares of Starbucks for $55.60 per share. I wish I had more money to spend here. But some car repairs and lower summer salary (because of my family leave), have left me a little tight this month. My new administrative salary kicks in next month and I'm hoping to have more to invest then. This is about a 14 percent decline from it's 52 week high. SBUX has raised it's dividend each of the last 6 years. The yield is a little low at 1.80 percent, but with a 48.3 percent payout ratio there is room to grow. Starbucks is a Morningstar Wide Moat stock with a 4 star rating. Currently 27 of 33 analysts rate Starbucks a buy or Strong buy. The average price target of the 27 analysts is $64.87.

But what I really like about Starbucks is it's ability to adapt it's model. They have traditional stores kiosks, and beverage trucks. They offer premium high end coffee as well as smoothies and new food options. Starbucks has more company owned stores than there competitors and it seems that they are constantly innovating and altering their model. They have rapidly expanded into Asia and have a strong brand recognition. What I see with Starbucks is a decent valuation with room for sustainable dividend growth over the next few years.

Disclosure: Long SBUX

Disclaimer

Material presented on 'Dividend Seedling' is for informational and entertainment purposes only and is the opinion of the author (a social studies teacher and not a financial advisor). None of the information should be relied on or taken as investing advice or a recommendation to invest. None of the information or opinions expressed, constitutes a solicitation of the purchase or sale of any security or investment of any kind. Please do your own research before making any investments. Do not making any purchases unless you are prepared to lose your entire investment.

Sunday, July 30, 2017

July Dividends

Another month of dividends is in the books. This July I brought in $4.15 total. That may not seem very impressive on the surface. But this is the first month I can look at my year over year progress. In those terms this small time investor is very happy. In 2016 I earned 0.94 in my first dividend month ever.  This puts my year over year growth rate at 293 percent. What even nicer is that both stocks I owned in 2016 increased their dividends since last July. I received a 9.9% growth rate from Disney and a 4.3% growth rate from GE.  Ironically I've bought a lot of GE lately and GE was the first share I ever bought. However, I won't see any new dividends from my latest GE buys until next quarter. Here is the dividen breakdown for July 2017.

TIF $1.50
O      $.85
GE    $.24
DIS $1.56

Disclosure: Long everything.

Disclaimer

Material presented on 'Dividend Seedling' is for informational and entertainment purposes only and is the opinion of the author (a social studies teacher and not a financial advisor). None of the information should be relied on or taken as investing advice or a recommendation to invest. None of the information or opinions expressed, constitutes a solicitation of the purchase or sale of any security or investment of any kind. Please do your own research before making any investments. Do not making any purchases unless you are prepared to lose your entire investment.

 

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Recent Buy GIS

I have been following GIS for six months and finally today I pounced grabbing 5 shares at 50.76 per share. I realize that the General Mills ...